Volkswagen Can Improve Its Business Marketing Plan

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Volkswagen has a relatively small market share in the U.S., but has made infrastructure investments in order to address that. The company needs to make changes to its marketing program in order to support those infrastructure investments. Most important, this means changing the promotional program. The marketing message does not resonate with consumers, the media mix may not be cost effective, and overall spending may need to increase. This could necessitate changes in the advertising agency and shifts in the marketing message to build brand strength.

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In addition, Volkswagen needs to leverage the increased cost flexibility that it will gain from its Mexican plant in order to become price competitive. To the best of its ability, it needs to benchmark its prices against category leaders. This will make the value proposition more appealing to consumers. The objective is to generate volume improvements, so undercutting benchmarks is highly desirable where it can be done profitably.

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